After years of tribulations, last year brought glimmers of hope for the private equity industry, with a boom in deals, capital raised, and, a fundamental piece for LPs’ liquidity needs, company exits. However, the current landscape of volatility in global markets casts doubt on the immediate future of deals, especially considering the weakness in IPO activity and the concentration in megadeals seen in the recent past.

The global private capital market began this year with considerable optimism, according to consulting firm KPMG. “A deep pool of available capital, an improved divestment environment, and a sense that macroeconomic conditions were stabilizing gave investors cautious confidence. This continued into the beginning of 1Q 2026; however, the sudden conflict in the Middle East understandably brought an initial contraction in the market,” said Gavin Geminder, Global Head of Private Equity at the firm, in a recent report. READ MORE